HomeMy WebLinkAboutResolution 2010-026 separation transition program for the remainder of FY 2010 and for FY 2011MARANA RESOLUTION N0.2010-26
RELATING TO PERSONNEL; APPROVING AND AUTHORIZING STAFF TO
IMPLEMENT A SEPARATION TRANSITION PROGRAM FOR THE REMAINDER OF
FISCAL YEAR 2010 AND FOR FISCAL YEAR 2011; DISCONTINUING THE TRANSITION
PACKAGE APPROVED BY THE TOWN COUNCIL ON MAY 5, 2009 VIA RESOLUTION
NO. 2009-63; AND DECLARING AN EMERGENCY
WHEREAS the Town Council is authorized by A.R.S. § 9-240 (A) to control the finances
of the Town; and
WHEREAS on May 5, 2009, via Resolution No. 2009-63, the Town Council approved a
Transition Package to provide transitional assistance for classified employees who might be
separated from Town employment due to a layoff in fiscal year 2010, defined as July 1, 2009
through June 30, 2010; and
WHEREAS the Town Council finds that discontinuing the Transition Package previously
approved and authorizing staff to implement the Separation Transition Program for the remainder
of fiscal year 2010 and for fiscal year 2011 as described in the Separation Transition Program
outline is in the best interests of the Town and its residents.
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE
TOWN OF MARANA, ARIZONA, AS FOLLOWS:
SECTION 1. The Town of Marana hereby discontinues the Transition Package approved
by the Town Council on May 5, 2009, via Resolution No. 2009-63.
SECTION 2. The Town of Marana hereby approves the Separation Transition Program
for the remainder of fiscal year 2010 and for fiscal year 2011 as described in the Separation
Transition Program outline, attached to and incorporated by this reference in this resolution as
Exhibit A.
SECTION 3. The Town's Manager and staff are hereby directed and authorized to
undertake all other and further tasks required or beneficial to implement the Separation
Transition Program, to include the execution of severance agreements in compliance with the
provisions of the Separation Transition Program as described in Exhibit A.
SECTION 4. Since it is necessary for the preservation of the peace, health and safety of
the Town of Marana that this resolution become immediately effective, an emergency is hereby
declared to exist, and this resolution shall be effective immediately upon its passage and
adoption.
PASSED AND ADOPTED BY THE MAYOR AND COQ IL THE TOWN OF
MARANA, ARIZONA, this 9th day of March, 2010.
_~~~~~~w~n,~si Mayor Ed onea
APPROVED AS TO FORM:
,Town
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Separation Transition Program Outline
The purpose of the Separation Transition Program is to provide transitional assistance for
classified employees who are being separated from Town employment due to a layoff.
The process for identifying employees who are to be separated as a result of a layoff is
outlined in Section 8-1-6 of the Town's Personnel Policies and Procedures.
Eligibility
All classified employees who are separated from Town employment due to a layoff
during the remainder of FY 2010 or during FY 2011 may choose to participate in this
program.
Definitions
COBRA-Consolidated Omnibus Benefits Reconciliation Act-provides that
covered employees and their qualified beneficiaries may continue health
insurance coverage under the Town of Marana's health plan when a qualifying
event such as loss of employment would normally result in the loss of eligibility.
2. FY 2011-July 1, 2010 through June 30, 2011.
3. Layoff-a reduction in the Town's work force due to a shortage of work or funds
or a material change in duties or organization, as defined in Section 8-1-6 of the
Town's Personnel Policies and Procedures.
4. Participating employee-a classified employee separated from Town employment
due to layoff during the remainder of FY 2010 or during FY 2011 who chooses to
participate in the Separation Transition Program.
5. Remainder of FY 2010-March 9, 2010 through June 30, 2010.
EXHIBIT A TO MARANA RESOL UTION NO. 2010-26
Policies and Procedures
Separation Transition Benefits
1. Sick-Leave Payout. Participating employees will receive a payout at 50% of their
accrued sick leave balance.
2. Vacation Leave/Compensatory Time. Participating employees will receive the
normal payout of vacation leave and compensatory time pursuant to the Town's
Personnel Policies and Procedures, if earned and applicable, upon the effective date
of the layoff.
3. Life Insurance Continuation. Participating employees will remain on the Town's
basic life insurance plan at the Town's expense at one times their salary for one year.
4. Medical Plan Subsidy. NOTE: Participating employees will be eligible for this
subsidy only if they are eligible for COBRA coverage and only if they are not eligible
to receive a COBRA premium subsidy from the federal government through the
American Recovery and Reinvestment Act (ARRA) or any subsequent legislation.
Eligible participating employees will receive a subsidy of $150 per month for up to
six months following their separation to offset the costs of COBRA continuation
coverage. This subsidy shall be payable directly to the COBRA administrator. The
Town will not pay the subsidy for any other type of health insurance coverage. The
Town will pay the subsidy only for those months that the participating employee
elects COBRA coverage, for a maximum of six months. If the participating
employee discontinues COBRA health care coverage for any reason before the end of
the six-month period, the Town will discontinue payment of the subsidy as well.
5. Severance Pav. Participating employees will receive severance pay in an amount
equal to a percentage of the participating employee's annual base salary multiplied by
the participating employee's length of service with the Town as follows:
Length of Service % of Annual Base Salary
0 to 10 years 1.5%
>10 to 15 years 1.75%
>15 years 2.0%
Examples:
• $40,000 annual base salary, 5 years of service:
$40,000 x .015 = $600 x 5 years = $3,000 severance pay
EXHIBIT A TO MARANA RESOLUTIONNO. 2010-26
• $40,000 annual base salary, 11 years of service:
$40,000 x .0175 = $700 x 11 years = $7,700 severance pay
• $40,000 annual base salary, 16 years of service:
$40,000 x .02 = $800 x 16 years = $12,800 severance pay
Participating employees will receive credit for partial years of service under this
formula. Notwithstanding this formula, the total amount of severance pay that will
be paid to any participating employee is capped at a maximum of $50,000.
6. Outplacement Services. Participating employees will receive up to six Employee
Assistance Program (EAP) individual counseling sessions to be used within 30 days
of the effective date of layoff, as well as the opportunity to participate in a job search
workshop provided by the Town's EAP provider.
Severance Agreement
Employees who elect to participate in the Separation Transition Program will be required
to enter into a severance agreement with the Town in order to receive the separation
transition benefits described in this program outline.
EXHIBIT A TO MARANA RESOL UTION NO. 2010-26